ETH just made a lower low on the chart if we exclude the December 4 flash crash. The price hit the $3,600 support and is currently hovering just below the $3,740 resistance.
The price action of the past few days has formed a large descending wedge (in blue). This is a bullish pattern, but it could be invalidated if ETH drops below a critical support level.
Technical Indicators
Volume: High volume during the sell-off was one of the reasons for the price to drop lower. The buying pressure looks weak today and is unlikely to push the price above the current level (in blue).
RSI: The 4-hour RSI has entered the oversold area (<30) and as a result the price has risen from $3,600. On the daily time frame, the RSI has made a lower low, signaling the trend is bearish.
MACD: The daily MACD made a bearish cross yesterday, which is not good for the bulls. The only positive aspect is that its histogram has been making a higher bottom (bullish divergence) since November, when the correction started. This could indicate that this downtrend could end in January.
Prospects
The trend of ETH is down. This trend will remain intact until ETH makes a higher high.
Short term price prediction
The current price action looks quite interesting because if the price breaks above the descending wedge, ETH will skyrocket in January, making this correction (November to January) quite similar to the correction. which we saw in May to July 2021. This scenario will be invalidated when the price breaks out and closes the daily candle below the wedge.
Source: Cryptopotato
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DISCLAIMER: The article is not calling for investment. Every decision is yours to decide